Microsoft 9/19 Euro Price Drop: Desperation or Confidence? Also, effects?

[drkohler]

Bitmap Frogs said:

drkohler said:

DirtyP2002 said:

I guess MS sells the 360 at a pricepoint where they just break even

Yea sure.... a HD-less XBox360 costs $250 to manufacture. Factor in the much higher taxes in Europe than in the states and you can probably figure out yourself if MS makes a profit in Europe when all shops start selling the Arcade at $199 (and all shops want to make a small profit on that $199 final price). My best guess is MS hopes that Arcade buyers will see the need to buy a (way overpriced) HD for their gadget sooner or later. If too many people replace their RROD-endangered old XBox360s with a new Arcade model and simply swap harddisks, then MS quarterly reports (Entertainment division) might turn rather reddish pretty fast...(not that Bill & cohorts cared, they have all the money to sink into the XBox gadgets).

You know when the E&D division of MS just closed a few months ago a profitable year while the ps3 is sinking all profits coming from the ps2 and psp, statements like that make you look, at the very least, funny.

While I agree that I do look funny sometimes,  you look plain dumb as the last quarter (after the price cuts in EU) was negative... guess what is the problem for MS after even more price cuts in EU and Asia and NA...?